Published on 7/3/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $190,000 leveraged notes with contingent downside linked to Dow
By Angela McDaniels
Tacoma, Wash., July 3 – HSBC USA Inc. priced $190,000 of 0% market-linked securities with leveraged upside participation and contingent downside due July 5, 2022 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 123% of the index return. If the index decreases by up to 30%, the payout will be par. If the index declines by more than 30%, investors will lose 1% for every 1% that the index declines from its initial level.
HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Market-linked securities with leveraged upside participation and contingent downside
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Underlying index: | Dow Jones industrial average
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Amount: | $190,000
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Maturity: | July 5, 2022
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final index level is greater than initial index level, par plus 123% of index return; if final index level is less than or equal to initial index level but greater than or equal to threshold level, par; if final index level is less than threshold level, 1% loss for every 1% that index declines from its initial level
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Initial index level: | 21,287.03
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Threshold level: | 14,900.921, 70% of initial level
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Pricing date: | June 29
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Settlement date: | July 5
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Agents: | HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
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Fees: | 4.35%
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Cusip: | 40433U7B6
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